what happens if developer goes bankrupt?

ask the bondholder from chrysler and gm?

i believe so, i think you really need to read the specifics of your contract. You should really ask your lawyer.

Not legal advice...a developer bankruptcy would imply the lenders have taken ownership of the development. I don't think this means automatic deposit return. Your deposit should be safe, if that's what your asking, if the development is in NY state...the deposit would be held in a escrow account and untouchable by the developer (outside of fraud, embezzelment etc). I agree, have your lawyer look at your specific situation.

It might mean the project gets finished faster and you'll have to close sooner.

thanks for the responses.. just curious since there hasnt' been much action on my development in a while.

Ignore folks like thedeuce (and those who don't know the difference between your and you're).

This is dependent on your contract. Talk to your lawyer.

We have encountered a member of the high and mighty message board typo police. Mdasch, go fuk yourself. Yeah, I'm full of typos.

I'm trying to contribute, made it clear I'm not an authority and ended with the same super-sage advice as your majesty. If you wanted to help, you could share some insight about how you recouped 70% of the deposit on your new development rather than picking on typos and shutting down discussions.

Well, the best way to contribute is to not speak unless you can give a difinitive answer.

Yes, we should all keep quiet unless we can offer a typo-free "difinitive" answer.

besides your deposit you should be concerned with what will happen to the rest of the units. will they be sold at firesale prices? if so you've just watched your investment go up in smoke.

Typically, you are still held to your contract. So unless you can find a way that they breached the contract or the offering plan, you do not get your deposit returned. But I would search long and hard for a way out because the bank will either hold a firesale on the unsold units or go rental, either of which will scuttle the value of your condo. Also, the bank is only obligated to pay the minimum assessment on the condos they have taken possession of -- they pay any utility/insurance/labor charges due that particular month, but not the full maintenance charge that you will be paying... meaning that the bank is contributing no funds to the buildings overage fund, and when the time comes for a major improvement to the building (roof, lobby, boiler, etc), you will be underfunded and have to pay a special assessment.